2002 News Releases
Middlefield Banc Corp. Reports Record Asset Levels; Earnings Increase

MIDDLEFIELD, OHIO  Middlefield Banc Corp. (MBCN) today reported assets at the end of 2001 had grown to a record level of $197,858,000. This represents an increase of 12.11% over year-end 2000 and a 47.80% growth over the last five years.

Thomas G. Caldwell, President and Chief Executive Officer noted, "It is very rewarding to be able to report these growth results to our shareholders. During 2001, we experienced growth on both sides of our balance sheet, an indication of the efforts we have made to be a full service, responsive community bank."

Net loan growth during 2001 was 13.30% or $17,724,000. Deposits, at year-end, totaled $167,383,000, representing an increase of 13.74% during the year. Stockholders’ Equity increased 8.46% to $19,787,000.

Basic earnings per share for 2001 totaled $2.06, while the cash dividend paid was $0.70. This compares with year 2000 figures of $2.02 and $0.54, respectively.

"Pressure on our net interest margin, lead by the rate decreases instituted by the Federal Reserve, was the major factor in our modest earnings increase," stated Donald L. Stacy, Chief Financial Officer of MBCN. "However, we are satisfied that we were able to increase earnings despite the rapidly changing rate environment, the additional capital expenditures that we incurred related to the opening of our fifth banking office and the introduction of Internet Banking."

Net income for the year 2001 was $2,271,000, up 1.52% from 2000’s $2,237,000. Net interest income was $6,885,000, which compares to $6,860,000 for 2000. Noninterest income increased from the year earlier by 29.04% to $1,268,000. Noninterest expense grew 7.55% to $4,741,000. The increase in noninterest expense is primarily attributable to equipment expense as well as expenses related to the startup of a new branch office and internet banking.

During the fourth quarter of 2001, net income was $582,000, which was 4.61% higher than the same quarter in 2000. Net interest income increased 0.99%, while noninterest expense grew 5.88%. Noninterest income was up in the period, gaining $85,000.

President Caldwell reported that credit quality remained within established guidelines. "Although the economy during 2001, especially the fourth quarter, proved to be very challenging, I am pleased that our
losses on loans remained at minimal levels and that our delinquency was less than one percent of loans at year-end. This is reflective of the strong asset quality within our organization."

At December 31, 2001, the allowance for loan losses was $2,062,000, representing 1.35% of gross loans outstanding. Loans thirty days and more delinquent totaled 0.93% of total loans.

Headquartered in Middlefield, Ohio, Middlefield Banc Corp. is a one-bank holding company for The Middlefield Banking Company. The Middlefield Banking Company, which operates offices in Chardon, Garrettsville, Mantua and Middlefield, celebrated its 100th Anniversary on September 16th, 2001. Middlefield Banc Corp. trades under the symbol MBCN.

The information contained in this press release contains forward-looking statements regarding future performance which are not historical facts and which involve risk and uncertainties. Actual results and performance could differ materially from those contemplated by these forward looking statements.